Recognizing Recognizing OpportunityOpportunityRecognizing Recognizing OpportunityOpportunity
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial TrendsUnderstanding Entrepreneurial Trends
Starting Versus Buying a BusinessStarting Versus Buying a Business
3.1Section
3.2Section
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Chapter 3
Recognizing Opportunity
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
SECTIONSECTION 3.13.1
Chapter 3 Recognizing Opportunity
The ability to recognize new opportunities and to think creatively is essential for success in today’s global market.
The Main Idea
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
SECTIONSECTION 3.13.1
Chapter 3 Recognizing Opportunity
One way to identify business opportunities is to study current trends that provide opportunities for entrepreneurs.
Current Entrepreneurial Trends
Current Entrepreneurial Trends
4
Internet businesses
service businesses
home-based businesses
green businesses
social entrepreneurship
focus on technology
outsourcing and strategic alliances
corporate ventures
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
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Chapter 3 Recognizing Opportunity
Internet Businesses
• The Internet has transformed the way business is conducted.
• An online business can reach customers around the world.
online business
a company that conducts business by means of the Internet
online business
a company that conducts business by means of the Internet
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
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Chapter 3 Recognizing Opportunity
Service Businesses
• Service businesses dominate the American economy.
• Business services account for the largest part of U.S. economic growth.
services
intangible things that businesses do for consumers that enhance their lives
services
intangible things that businesses do for consumers that enhance their lives
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
SECTIONSECTION 3.13.1
Chapter 3 Recognizing Opportunity
Outsourcing
Outsourcing is hiring people and other companies to handle tasks that a business cannot do or chooses not to do itself.
outsourcing
contracting with other companies for services
outsourcing
contracting with other companies for services
Outsourcing
8
more efficientmore efficient
saves timesaves time
saves moneysaves money
lowers regulatory burden
lowers regulatory burden
speeds up projects
speeds up projects
attracts investorsattracts investors
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
SECTIONSECTION 3.13.1
Chapter 3 Recognizing Opportunity
Strategic Alliances
A strategic alliance is a partnership among companies.
strategic alliance
a partnership formed with another company for the purpose of supplying a product or service
strategic alliance
a partnership formed with another company for the purpose of supplying a product or service
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
SECTIONSECTION 3.13.1
Chapter 3 Recognizing Opportunity
Corporate Ventures
A corporate venture is formed within a company.
corporate venture
a new venture started inside a larger company
corporate venture
a new venture started inside a larger company
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
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Chapter 3 Recognizing Opportunity
Creativity and Innovation
Creativity is the activity that results in innovation.
innovation
a new way of doing things
innovation
a new way of doing things
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
SECTIONSECTION 3.13.1
Chapter 3 Recognizing Opportunity
• You generate ideas by thinking creatively.• Opportunities are ideas that have commercial
potential.• You can find a good business opportunity by
recognizing an unfilled market niche.
Section 3.1 Understanding Entrepreneurial Trends
Idea vs. Opportunity
niche
a small specialized market
niche
a small specialized market
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
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Chapter 3 Recognizing Opportunity
Thinking Creatively About Opportunity
During brainstorming, ideas are not judged as good or bad.
brainstorming
to think freely in order to generate ideas
brainstorming
to think freely in order to generate ideas
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
SECTIONSECTION 3.13.1
Chapter 3 Recognizing Opportunity
Watch for Demographic Changes
It is important for entrepreneurs to understand demographics and demographic trends.
demographics
personal characteristics that describe a population by age, gender, income, ethnic background, education, and occupation, among others
demographics
personal characteristics that describe a population by age, gender, income, ethnic background, education, and occupation, among others
15
Sources of
Information
trade magazines
specialty magazines
trade shows
exhibitions
newspapers
The Internet
government agencies
Sources of Information
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
SECTIONSECTION 3.13.1
Chapter 3 Recognizing Opportunity
Consult Outside Sources
• A trade magazine offers current, industry-specific news.
trade magazine
a periodical published for a specific type of business or industry
trade magazine
a periodical published for a specific type of business or industry
• A specialty magazine offers information about specific topics.
• You can use specialty magazines to identify the interests and needs of potential consumers.
specialty magazine
a periodical published for people with special interests, such as sports, camping, or fashion
specialty magazine
a periodical published for people with special interests, such as sports, camping, or fashion
Glencoe Entrepreneurship: Building a Business
Understanding Entrepreneurial Trends
SECTIONSECTION 3.13.1
Chapter 3 Recognizing Opportunity
Consult Outside Sources
• At a trade show, you can learn about new goods and services in a field.
trade show
a gathering or exhibition where vendors and manufacturers introduce new items and promote established products and services
trade show
a gathering or exhibition where vendors and manufacturers introduce new items and promote established products and services
Starting Versus Buying a Business
Glencoe Entrepreneurship: Building a Business
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Chapter 3 Recognizing Opportunity
Whether you start a business or buy an existing one, make sure it is compatible with your personal values and goals.
The Main Idea
Starting Versus Buying a Business
Glencoe Entrepreneurship: Building a Business
SECTIONSECTION 3.23.2
Chapter 3 Recognizing Opportunity
Personal Values and Goals
Personal values and goals should be used as a guide when choosing entrepreneurial pursuits.
values
the beliefs and principles by which you choose to live that define who you are, shape your attitudes and choices, and help you identify your priorities
values
the beliefs and principles by which you choose to live that define who you are, shape your attitudes and choices, and help you identify your priorities
Starting Versus Buying a Business
Glencoe Entrepreneurship: Building a Business
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Chapter 3 Recognizing Opportunity
• The greatest advantage of a family business is the trust and togetherness that family members often share.
• Families that work well together have great potential for success in a family business.
Entering the Family Business
Starting Versus Buying a Business
Glencoe Entrepreneurship: Building a Business
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Chapter 3 Recognizing Opportunity
• In many ways, buying an existing business is less risky than starting one from scratch.
Buying an Existing Business
• When you buy an existing business, you often gain the goodwill of loyal customers.
goodwill
the favor and loyalty a business acquires by its good reputation
goodwill
the favor and loyalty a business acquires by its good reputation
Starting Versus Buying a Business
Glencoe Entrepreneurship: Building a Business
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Chapter 3 Recognizing Opportunity
Buying a Franchise
• When you buy a franchise, you buy the right to set up a new business patterned on an existing model.
franchise
a legal agreement to begin a new business in the name of a recognized company
franchise
a legal agreement to begin a new business in the name of a recognized company
• The franchisee is the buyer of a franchise.
franchisee
the buyer of a franchise who is given the right to the franchisor’s product, process, or service
franchisee
the buyer of a franchise who is given the right to the franchisor’s product, process, or service
franchisor
the seller of a franchise who is giving the buyer planning and management expertise
franchisor
the seller of a franchise who is giving the buyer planning and management expertise
• The franchisor is the seller of a franchise.
Starting Versus Buying a Business
Glencoe Entrepreneurship: Building a Business
SECTIONSECTION 3.23.2
Chapter 3 Recognizing Opportunity
To evaluate a business opportunity:
Investigate the company.
Investigate the industry.
Talk to customers, employees, and suppliers.
Hire an accountant to advise you.
Hire an attorney to advise you.
Evaluating a Business Opportunity
Where to Find a Business
24
FindingBusiness
Opportunities
newspapersbusinesspublications
networkingbusiness brokers
Starting Versus Buying a Business
Glencoe Entrepreneurship: Building a Business
SECTIONSECTION 3.23.2
Chapter 3 Recognizing Opportunity
• When you start your own business from scratch, you can do things your own way.
• You can build the company with fresh ideas and enthusiasm.
Starting Your Own Business